KUALA LUMPUR: Bursa Malaysia opened weaker despite a better performance on Wall Street as the market recalibrates its expectations for the timing of the US Federal Reserve (Fed) rate cut.
United States' stock markets turned volatile after the Fed concluded the Federal Open Market Committee (FOMC) with interest rates unchanged, affirming that the US interest rate is at its peak and a March rate cut is unlikely.
"Hence, the market is pricing in rate cuts that may happen in the second half of 2024 and will closely monitor the corporate earnings and employment reports later today," Malacca Securities Sdn Bhd said in its note.
At 9.50 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) was up 2.38 points to 1,515.36 from Wednesday's close of 1,512.98.
The barometer index opened 3.63 points easier at 1,509.35.
On the broader market, losers led gainers 474 to 257, while 338 counters were unchanged.
Tradeview Capital fund manager Neoh Jia Man said the market will continue to be influenced by ongoing earnings releases and pending job reports in the US. "Nonetheless, we retain a sanguine view on the longer-term outlook of the local market, in view of the clearer policy direction and political stability," he told Business Times.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng remains vigilant and expect the benchmark index to stay in consolidation mode impacted by cautious sentiment across the region, until more clarity surfaces.
"Thus, we anticipate the FBM KLCI to trend within the range of 1,510-1,520 for today," he added.